Society calls for pension examination

A “FUNDAMENTAL” examination of the requirements in the event of the winding up of pension schemes has been called for by the Society of Actuaries in Ireland.

The body has also called for a review of the statutory wind-up priorities.

The call was made after the body broadly welcomed the proposed review of pension policy in the new Social Partnership agreement.

“While we welcome such a proposal, the funding standard for defined benefit schemes should be maintained,” said Colm Fagan, president of the Society of Actuaries.

“We appreciate that our recommendation runs contrary to the views that have been articulated by others — including IBEC, the ICTU and the Irish Association of Pension Funds.

However, our view is that the funding standard is needed to safeguard the entitlements of pension scheme members and should not be diluted,” he added.

On the subject of a review of the statutory wind-up priorities, Mr

Fagan said that the society had suggested a number of ways of changing the current system with the aim of “achieving greater equity”.

These include the levelling up of the priorities — or giving the same priority as pensioners’ benefits to an element of the benefit entitlements of other classes of members, particularly those who are approaching normal retirement age.